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HomeMy WebLinkAboutAgenda - 03-06-2001-8jORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 6, 2001 Action Agenda Item No. ~~~ SUBJECT: Revised Scrap Tire Agreement DEPARTMENT: Solid Waste PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Scrap Tire Contract INFORMATION CONTACT: Gayle Wilson, 968-2800, ext 126 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider approving a four year contract with Central Carolina Tire far the removal of scrap tires from the Orange County Landfill. BACKGROUND: At their December 4, 2000 meeting, the BOCC approved a two year addendum to an existing agreement with U.S. Tire Recycling, L.P. that provides for the handling and disposal of scrap tires received at the Orange County Landfill. However, in January of 2001, the management of two firms - U. S. Tire Recycling and Central Carolina Tire -merged to form a new company. Because the vendor and some of the terms of the agreement approved in December have changed, staff recommends that the Board review and approve a revised agreement for scrap tire disposal. The attached contract would be for a period of four years, with a 3% increase in cost per year and the possibility of a two-year extension after the initial contract, if bath parties agree at that time. Costs for the program are addressed with tipping fees (for those cases where, by law, they may be charged) and State-shared revenue earmarked far scrap tire management programs. Scrap tire management requirements were instituted in 1989, when the North Carolina General Assembly approved Senate Bill 111. That law provided for sweeping changes in the way that solid waste would be managed throughout North Carolina from that point forward. Among many other elements of that legislation was the implementation of a comprehensive scrap tire disposal program. There were several changes to funding of the program in the early 1990's, but since then, State law and regulations have generally included the levying of a 2% tax on the purchase of each new tire in North Carolina (the percentage levied is smaller on some larger, more expensive tires). Each county receives a portion of the revenue accumulated through this State-administered tax to offset the costs of disposing of scrap tires received at each county's solid waste facilities. The law prohibits counties from charging for tire disposal at a county landfill, except for out-of--state generated tires, tires originating from illegal tire dumps, or tires in excess of 4 per trip that originate from a single residence (Orange County allows up to 8 tires from a resident). 2 Revenue received quarterly by Orange County, in addition to the $100/ton tine fee revenue from the tires that are exempt from free disposal, typically covers the cost of disposing of scrap tires. Scrap tire grants are available if scrap fire management expenses exceed revenues and reimbursements. In FY 1999-00, the county received 1,232 tons (approximately 123,000) of tires for disposal. FINANCIAL IMPACT: The per ton disposal price under the proposed contract would remain unchanged from the present $74 for the first year of the contract, with a 3% increase per year after that. An upward or downward adjustment in the overall contract cost would be made based on the price of fuel for each load of tires transported. The State scrap tire management fund is designed to ensure that each county receives adequate revenue to cover the cost of its scrap tire disposal program. Sufficient funds for FY2000-01 have been budgeted in the Solid Waste/Landfill Enterprise Fund to cover the cost of the contract with Central Carolina Tire. Historical revenues and expenditures for the scrap tire program, based on figures provided by the State's Solid Waste Management Division, are outlined in the table below: State Scrap Total Total FY Est # Tires Tip Fees Tire Reimburse Program Program Disposed Collected ment Revenue Expenses 90-91 22,410 $22,410 $36,159 $58,569 $40,121 91-92 74,040 $8,100 $50,090 $58,190 $82,252 92-93 26,740 $17,019 $58,818 $75,837 $43,100 93-94 75,581 $5,648 $57,340 $62,988 $69,815 94-95 151,500 $2,194 $$2,976 $85,170 $117,183 95-96 91,644 $D $86,211 $86,211 $106,166 96-97 105,500 $0 $91,286 $91,286 $91,918 97-98 109,800 $0 $93,169 $93,169 $88,962 98-99 110,$25 $5,035 $96,885 $101,920 $91,052 RECOMMENDATION(S): ,The Manager recommends that the Board approve the agreement with Central Carolina Tire, subject to final review by staff and the County attorney, and authorize the Chair to sign it. STATE OF NORTH CAROLINA AGREEMENT FOR THE COUNTY OF ORANGE REMOVAL OF SCRAP TIRES This Agreement, made and entered into this day of , 200_ by and between The County of Orange, on behalf of its Salid Waste Department (herein referred to as "County") and Central Carolina Tire, (herein referred to as "Central Carolina Tire"). WHEREAS, the county wishes to cantract with Central Carolina Tire for removal of scrap tires from the Orange County Landfill, and WHEREAS, Central Carolina Tire wishes to provide these services NOW THEREFORE, it is mutually agreed as follows: 1. This contract shall be,in effect from March 1.2001,to February 28 2005. If mutually agreeable, The County and Central Carolina Tire may exercise an option for an additional two (2) years; through February 2$, 2007. 2. Duties of Central Carolina Tire; Central Carolina Tire agrees to provide: a) removal of all scrap tires, including rims received at the Orange County Landfill on Eubanks Road; b) no more than approximately one load (10 to 12 tons) will remain on the ground at one time during the term of the contract; c) all loading and hauling will be conducted by Central Carolina Tire; d) to the extent possible (minimum 40%) scrap tires will be recycled; e) landfilling of recyclable scrap tires is discouraged; f) Central Carolina Tire will provide an employee to load the tires on a regular basis; at least weekly; g) all state and federal regulations to be followed regarding transportation and disposal of scrap tires; h) The County will determine the amount of scrap tires removed by Central Carolina Tire utilizing the landfill scales. Each load of scrap tires removed fram the landfill will be weighed. The invoice to the County will be calculated according to landfill scale records. 3. Duties of the County: The County agrees to keep a record of all scrap tire tonnages removed by Central Carolina Tire and to pay monthly at a rate of $74.00 per ton for year one of the contract. The rate would increase 3% per year for the term of the contract, making the second year rate at $76.22, the third year rate at $78.50, and the fourth and final year at $80.86. The County will provide an area at the landfill of appropriate size to conduct scrap tire activities. Loading facilities will be maintained by the County. 4. Insurance Reurrements: Central Carolina Tire will maintain and provide proof of the following insurance requirements: a. Workers' Compensation: Coverage to apply for all employees for statutory limits in compliance with the applicable state and federal laws. The policy must include employers' liability with a limit of $100,000 each accident, $100,000 bodily injury. by disease each employee and $500,000 bodily injury by disease policy limit. b. Comprehensive General Liability: Coverage shall have minimum limits of $1,000,000 per occurrence, combined single limit for bodily injury liability and property damage liability. This shall include premises and operations, independent contractors; products and completed operations and contractors; products and completed operations and contractual liability. c. Business Auto Liability: Coverage shall have minimum limits of $$1,000,000 per occurrence, combined single limit for bodily injury liability and property damage liability. This shall include owned vehicles, hired and non-owned vehicles and employee non-ownership. SPECIAL~~UIREMENTS a. The County is to be named as an additional insured on the Comprehensive General Liability policy. b. Current, valid insurance policies meeting and the above requirements shall be Maintained for the duration of the event. Renewal certificate shall be sent to the County 30 days prior to any expiration date. There shall also be a 30 day notification to the County in the event of cancellation or modification of any stipulated insurance coverage. Certificates of insurance on an Accord 2S Form meeting the required insurance provisions shall be forwarded to The County of Orange's Purchasing Agent. Wording on the Certificate which states that no liability shall be imposed upon the company for failure to provide such notice is not acceptable. Original policies or certified copies ofpolicies may be required by the County at any time. Hold Harmless Central Carolina Tire agrees to protect, defend, indemnify and hold harmless the County from all loss, liability, claims or expense (including reasonable attorneys' fees) arising from bodily injury, including death or property damage to any person or persons caused in whole or in part by the negligence or willful misconduct of the contractor except to the extent same are caused by the negligence or misconduct of the County. d. This Contract maybe terminated according to either of the following provisions 1. Default: If either party hereto deems the other party hereto to be in default of any provision hereof, the claiming party shall provide notice in writing to the defaulting party of said default. If said defaulting party fails to correct the default within twenty (20) working days from the date of notice, the other party may terminate this contract immediately. Incase of such termination the party terminating this contract shall forthwith give the other party written notice of such termination. 2. Mutual Agreement: This Contract may be terminated by mutual agreement of the parties hereto, at any time. e. Fuel Surcharge Adjustment The rate for services as described in the agreement for removal of scrap tires shall remain at $74.00 per ton with a fuel surcharge to be added to each load using the following formula: Price per Gallon Price Adjustment per Mile $0.75-$0.99 -$0.05 $1.00-$1.24 No Adjustment $1.25-$1.49 +$0.05 $1.50-$1.74 +$0.10 $1.75-$2.00 +$0.15 The round trip mileage charge from the "County" to "Central Carolina Tire" is 91 miles. The price per gallon will be established an the first business day of each month by calling the Diesel Furl Hotline at (202) 586-6966 at 12:00 noon, and obtaining the average diesel price for the East Coast. IN TESTIMONY WHEREOF, the parties have hereunto set their hands and seals the day and year first above written. COUNTY: BY: Stephen H. Halkiotis, Chair ATTEST: By: Beverly A.Blythe CONTRACTOR: WITNESS: This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Contral Act. Finance Director G STATE OF NORTH CAROLINA ORANGE COUNTY I, , a Notary Public for said County and State, do hereby certify that Beverly A. Blythe personally appeared before me this date and acknowledged that she is the Clerk to the Board of Commissioners of Orange County, and that by authority duly given. and as the act of Orange County, the foregoing instrument was signed in its name by Stephen H. Halkiotis, Chair, sealed with its official seal, and attested by herself as its Clerk. WITNESS my hand and official seal, this the day of Notary Public My Commission expires: STATE OF _ COUNTY OF 2001. I, , a Notary Public, do hereby certify that personally appeared before me this day and acknowledged the due execution of the foregoing Agreement. WITNESS my hand and official seal; this the day of 2001. Notary Public My Commission expires: